The Government has announced changes to the Temporary Wage Subsidy Scheme, which it says is to ensure greater retention of staff.

It will see those earning less than €412 per week - or almost €24,400 a year - have their subsidy increased from 70% to 85%.

For those with previous average net pay between €412 and €500 per week, equivalent to between €24,400 and €31,000 a year, the subsidy will be up to €350 per week.

There are no changes for those whose previous average net pay was between €500 and €586 per week.

They will continue to receive a subsidy of up to 70% of previous net income, up to a maximum of €410 per week.

Those earning over €586 per week - or €38,000 a year - will see a tiered approach for their subsidy.

The maximum payable for these remains €350 per week.

The tiered approach takes into account both the amount paid by the employer, and the level of reduction in pay of that employee.

Source: Government of Ireland

The TWSS was introduced on March 26th as an income support for employees, where the employer’s business was been negatively impacted by the COVID-19 pandemic.

The aim is to maximise staff retention by maintaining the link between the employer and employee.

Over 43,000 employers have registered for the scheme, and more than 26,000 of these have already received a refund.

While over 255,000 workers have already received at least one payment - and approximately 84% have also received a top-up payment from their employer.

Finance Minister Paschal Donohoe also said the wage subsidy is now available to support employees where the average net pre-COVID salary was greater than €76,000, and their gross post-COVID salary has fallen below €76,000.

The tiered arrangement to gross incomes over €38,000 will apply to this.

Therefore, if an employee was earning over €76,000 gross and has now been reduced to below €960 net pay a week,  and their reduction is more than 20% then a subsidy of up to €205 would be payable and if the reduction was more than 40% a subsidy of up to €350 would be payable.

Minister Donohoe said: "The Temporary Wage Subsidy Scheme was designed and introduced with great speed.

"This was done to ensure the greatest number of employees maintained the link with their employee during this difficult time.

"It stood to reason that there were anomalies that needed to be ironed out to ensure greater fairness and implementation of the scheme.

"The whole world is facing a time of unprecedented difficulty.

"Here in Ireland we are working hard to ensure the impact and fallout from what is happening is minimised for our people to the greatest extent possible.

"Today’s measures serve to reinforce that message and to offer additional comfort to employer and employees in the period ahead".

The changes will apply for payroll with a pay date on or after May 4th, and received by the Revenue Commissioners on or after that date.

There can be no back-dating of the increased subsidy, and there is also no change to the qualification criteria for employers.